Advisory on Tax Shelter Gifting Arrangements

October 14, 2010

In light of recent media coverage on tax shelters, the Canadian Cultural Property Export Review Board suggests that designated institutions and public authorities, artists, donors and monetary appraisers exercise caution when presented with proposals to participate in tax shelter gifting arrangements for cultural property.

Tax shelter gifting arrangements promote tax advantages for participants as a primary motivation for donating cultural property to Canadian institutions. Canada Revenue Agency has posted alerts online which the Review Board encourages stakeholders involved with cultural property to note.

For purposes of administering the Income Tax Act and the Cultural Property Export and Import Act, information may be exchanged between Canada Revenue Agency and the Review Board.

Starting immediately, all future applicants for certification to the Review Board will be asked to provide a tax shelter number if the cultural property is part of a tax shelter gifting arrangement.

For more information, please contact the Canada Revenue Agency